Affiliate marketing is emerging as a multifaceted tool for US marketers, and they are harnessing its potential at various stages of the customer’s purchase journey. According to data from a June 2023 report by Gen3 Marketing, affiliate strategies are actively applied throughout the funnel, from the initial awareness stage to the critical conversion phase.
The report underscores the adaptability of affiliate marketing with 56% of marketers incorporating these strategies into their upper-funnel awareness initiatives. Furthermore, 58% utilize affiliate marketing to influence mid-funnel consideration, while 50% turn to it for lower-funnel conversion efforts. This extensive adoption of affiliate marketing demonstrates its versatility in addressing various marketing goals.
Despite the growing interest and adoption of affiliate marketing, the channel still occupies a relatively modest position in marketing budgets. Martech Record‘s research indicates that while 48.9% of marketers have plans to increase their investment in affiliate marketing in the current year, many brands and agencies allocate just 10% or less of their marketing budget to these initiatives.
Affiliate marketing faced a lukewarm start in 2023 due to the challenge posed by sluggish retail e-commerce sales and a general slowdown in digital advertising spending. However, the resilience and adaptability of affiliate marketing strategies are making them increasingly attractive to marketers. These strategies offer a diverse range of benefits, enabling marketers to effectively reach and engage their target audiences at different points along the purchase journey.
As the marketing landscape continues to evolve and adapt to ever-changing consumer behavior and market dynamics, affiliate marketing is poised to become a linchpin of successful marketing strategies, effectively covering various aspects from brand building to driving conversions.
In the ever-evolving world of marketing, influencer marketing deserves a highlight. Predictions earlier this year suggested that 64% of marketers would beef up their influencer marketing budgets in 2023. Now, it’s clear that spending on influencer marketing in the US is on the fast track, growing over three times faster than regular social media ads in 2023.